Asahikawa, JAPAN, June 13 (Reuters) - Bank of Japan board member Sayuri Shirai said on Thursday that the central bank expects Japan’s long-term rates to eventually stabilise at levels consistent with its 2 percent inflation target.
“The BOJ will continue to closely monitor market developments. With flexible market operations, taking into account discussions with market participants, the BOJ expects both short and long-term interest rates to move stably as a whole,” Shirai told business leaders in Asahikawa, northern Japan.
The BOJ kept monetary policy steady on Tuesday and held off on new measures to calm bond markets, judging that its massive monetary stimulus in April was sufficient to revive the stagnant economy. The decision led to a sharp sell-off in Japanese shares as prospects of less stimulus from central banks depressed sentiment.